Coop. dept. begins probe into AR Nagar bank fraud

The State Department of Cooperation has ordered an inquiry into the allegations of irregularities at AR Nagar Service Cooperative Bank, A.R. Nagar, in the district.

A five-member team led by the Assistant Registrar of Cooperative Societies, Tirurangadi, will investigate the allegations of the bank fraud.

Widespread irregularities, including fake deposits to the tune of over ₹100 core, were found in a raid conducted by the Income Tax Department in March.

The bank’s governing body had refused to act in spite of strong allegations with the backing of evidence were levelled against bank administrator V.K. Harikumar and his wife. Income Tax officials, who

raided the bank, had found transactions of heavy amounts through benami accounts.

Meanwhile, bank president K.T. Latheef tendered his resignation on Friday. Indian Union Muslim League (IUML), which controls the bank, said that Mr. Latheef’s resignation was part of a normal procedure

after two and a half years.

The involvement of several IUML leaders is suspected in the cooperative bank fraud. The IT raids had found illegal deposits of black money of over ₹100 crore in the bank.

The investigation by the State Department of Cooperation has come following a recommendation by the Income Tax Department.

A large number of accounts at the bank were found not to have fulfilled the Know Your Customer (KYC) norms. Such accounts were frozen following the IT raids.

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Printable version | Sep 25, 2021 3:18:44 PM |

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